Editor of The Bauman Letter, Ted Bauman describes himself as a Bitcoin Skeptic. He offers insight into the potential shortcomings of the bitcoin currency in view of its current capacity.
We may see a functional, widely accepted cryptocurrency someday, but it won’t be bitcoin.#Crypto #cryptocurrency #cryptocurrencies #bitcoin #Ethereum #investing #stocks #StockMarket #BanyanHillhttps://t.co/re4MOkoAPo
— Ted Bauman Guru (@Ted_B_Guru) January 23, 2018
He creates a scenario set in 2020, at an airport parking garage to explain how a bitcoin currency will work in case you lose your real wallet and are left with no cash or cards. The alternative would be to rely on your virtual bitcoin wallet. After taking a tiresome flight and arriving at airport parking, you pay the fee and wait approximately 20 minutes to receive your ticket. This is the time frame you should expect to wait out in order for your transaction to process, provided that the underlying technology of bitcoin doesn’t change.
He concludes if things carry on the way they are at present, bitcoin is definitely not going to happen. However, he also mentions there are fixtures underway, which can potentially earn you profit if you play strategically.
Bitcoin is a cryptocurrency that is decentralized; this aspect makes bitcoin secure and untraceable. It cannot be subject to government manipulation either. Read more about Ted Bauman at talkmarkets.com
Bitcoins are created by expanding an algorithm – this is done through an intensive computer process called mining. Anybody sending or receiving bitcoins must wait for the mining process to be completed. This can be very time consuming,especially compared to credit card transactions, in which 150 million transactions are processed per day and up to 24,000 per second. The bitcoin network so far only processes about 6.5 transactions per day, taking up to 10 minutes per transaction.
Ted Bauman suggests reducing the amount of data processed in each bitcoin or enlarging the blocks so that more information can be processed at a time. Reducing the size of the block will speed up the transaction process. This can be done by adopting a segregated technology called SegWit2x, which a majority of bitcoin miners voted in favor of. However, shifting some data out of new data blocks can make bitcoin less secure. To counter this, bitcoin miners commenced a “hard fork”. The process uses a different technology to start a new chain of transactions and can’t technically be called bitcoin, so the miners call it ‘Bitcoin Cash’.
The SegWit2x proposal to alter bitcoin’s blockchain was revoked last week, which resulted in sellers resorting to Bitcoin cash. Bitcoin tanked for this reason.
Realizing the cons of bitcoin, there will be more forks like this in the near future as there seems to be no other way to resolve its drawbacks. However, owning bitcoin could be redeemed for whatever currency that is forked off next.
Ted Bauman is an analyst that offers foresight into future developments in many fields. He joined Banyan Hill Publishing in 2013 and currently serves as the editor of The Bauman Letter and Alpha Stock Alert. His expertise lies in asset protection, international migration issues and privacy. He also offers low-risk investment strategies. He is based in Atlanta, GA, where he lives with his family. Read more:http://thesovereigninvestor.com/precisionprofits/ted-bauman/